value stream mapping for transactional...

Value Stream Mapping For Transactional Processes A METHODICAL APPROACH TO IMPROVE VALUE STREAMS

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& Associates, LLC.

Any disclosure, use, copying or distribution of

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strictly prohibited without permission from

Gregory Cochran & Associates, LLC.

Value Stream Mapping

Whiteboard 3

18,400 pcs/mo

-12,000 “L”

-6,400 “R”

Tray = 20 pcs

2 Shifts

State Street

Assembly

1x daily

Stamping S. Weld #1 S. Weld #2 Assembly #1 Assembly #2 Shipping

(draw this then erase)

Kaizen!

3/14/2002

ICoils

5 days

I4600 L

2400 R

I1100 L

600 R OCT = 62 sec

D/R = 62 sec

C/O = 0

REJ = 6%

U/T =100%

2 Shifts

27, 600 sec. Avail.

OCT = 40 sec

D/R = 40 sec

C/O = 0

REJ = 7%

U/T = 100%

2 Shifts

27,600 sec. Avail.

Shipping

Staging

III1600 L

850 R

1200 L

640 R

2700 L

1440 R

Ferrous

Metals Co.

500 ft coils

Tues &

Thurs

Machine

1

OCT= 39 sec

D/R = 39 sec

C/O = 10 min

REJ = 4%

U/T= 100%

2 Shifts

27, 600 sec Avail.

OCT= 1 second

D/R = 1 second

C/O = 1 hour

REJ = 3%

U/T = 85%

27,600 sec. avail.

EPE = 2 weeks

Stamp

200 t

Weld

1

OCT = 46 sec

D/R = 46 sec

C/O = 10 min

REJ = 5%

U/T = 80%

2 Shifts

27,600 sec. Avail.

1x

daily

Sub-Assembly

1

Assembly

1

MRP

18,400 pcs/mo

-12,000 “L”

-6,400 “R”

Tray = 20 pcs

2 Shifts

Highland

Manufacturing

Sheet Metal

Housings

Current State

(Date)

Daily Ship

Schedule

Weekly Schedule TT = 60 sec.

Manchester

Avenue

6-week

Forecast

Weekly

fax

Production

ControlMRP

90/60/30 day

Forecasts

Daily

Order

5 days 7.6 days 1.8 days 2.7 days 2 days 4.5 days

1 sec. 39 sec. 46 sec. 62 sec. 40 sec.

Lead Time=

23.6 days

Process Time=

188 sec

Action Resp When Benefit

How Do I Get Started With

VSM?

Ground Rules For Event

Safety First (Use Personal Protective Equipment)

Active Participation By All

Start And End On Time

All Electronic Gadgets (Phones, Pagers, Etc.) Turned To “Off” Or “Silent”

Computers To Be Used Only When Instructed

Keep An Open Mind To Change

Don’t Let “Perfect” Get In The Way Of “Better”

Reach For The Mind Before The Wallet

1. Throw Out Traditional Concepts Of Manufacturing/Business

Methods.

2. Think Of How The New Method Will Work – Not Why It

Won’t. Keep An Open Mind To Change.

3. Don’t Accept Excuses. Totally Deny The Status Quo.

4. Don’t Seek Perfection. A 50% Implementation Rate Is Fine

As Long As It Is Done On The Spot.

5. Correct Mistakes The Moment They Are Found.

11 Kaizen Commandments

6. Think Creativity Before Capital. If You Have To Spend Money On

Improvements, Simulate It First.

7. Problems Give You A Chance To Use Your Brain.

8. Ask “Why” Five Times. Then Ask Any And All Other Questions – There

Are No Dumb Questions.

9. Leave Titles At The Door – One Person, One Voice, No Position Or

Rank. Ten Persons’ Ideas Are Better Than One Person’s.

10. Improvements Know No Limits.

11.Don’t Fool Yourself!

11 Kaizen Commandments, Continued

Value Stream Mapping Defined

VSM Is A Snapshot Of All Actions Both Value Added And Non-value Added

Required To Bring A Product Or Service Through The Main Material And

Information Flows

Components

Current State Value Stream Map

Mark-up Of Current State

Value Stream Map

Future State Value Stream Map

Value Stream Plan

Key Characteristics

VSM Is A Graphical Representation That

Uses A Common Mapping Language

VSM Provides The Basis And Direction

For Identifying Improvement

Opportunities

The Power Is In The Plan!

Value Stream Map And Process Map Distinction

I I

VALUE STREAM MAP

• Detailed Graphical Depiction Of A

Manufacturing Or Business Process

• Used To Identify Specific Improvements

• Incorporates Decision Loops Within The

Process

• High-level Snapshot Of End-to-end Business

• Used To Identify Where Opportunities For

Improvement Exist

• Does Not Incorporate Decision Loops

To Effectively Use Of The Value Stream Mapping Tool And Method To

Clearly Identify Waste In Key End-to-end Manufacturing And Business

Processes, And Create An Executable Transformation Plan.

When To Use

To Provide Direction For Getting Started On

The Lean Journey

To Execute Improvements Driven By Strategy

Deployment And Key Business Imperatives

To Gain True Cross-functional Understanding

The End-to-end Process

When To Use Value Stream Mapping

Benefits

Focuses Limited Resources

Establishes Timeline For Expected Performance

Improvements

Avoids Creating Islands Of Success In A Sea Of

Waste

Allows Everyone Gain A Common Understanding Of

The Current State And The Future Vision

Repeat For Each Identified Value Stream

Value Stream Mapping Roadmap to Success

Repeat

Site Assessment

PROCESS STEP 1

VSM Event

Preparation

PROCESS STEP 2

Conduct

VSM Event

PROCESS STEP 3

Implement

VS Plan

PROCESS STEP 4

Complete Intro To

Lean

Identify Strategic Value

Streams And Product

Families

Plan VSM Events

Select Sponsor, VSM

Leader, & Team

Select Value Stream And

Product Family

Collect Value Stream

Data

Plan Logistics For VSM

Event

Current State VSM

Future State VSM

Transformation Plan

Complete

Plan Kaizen Events That

Link To Transformation

Plan

Train Kaizen Teams

Conduct Kaizen Events

And Measure Results

Manage Results

Repeat For Each Identified Value Stream

Value Stream Mapping Process

Repeat

Cycle

Site Assessment

PROCESS STEP 1

VSM Event

Preparation

PROCESS STEP 2

Conduct

VSM Event

PROCESS STEP 3

Implement

VS Plan

PROCESS STEP 4

Develop

Transformation

Plan

Create

Future

State Map

ID Improvements

To The

Current State

Create

Current

State Map

Pre-event Work

Select Product

Or

Service Family

Pre-Event Work

Pre-Event: Create VSM Kaizen Charter

As A Team Answer:

• Why Are We Doing This Event?

• Define “Value Stream”

• Identify The Customer

• Clearly Identify The Product Or Service Family: VALUE OBJECT

• Volume Analysis: What Is The Demand For Each Product Or Service And For The Product

Family As A Whole?

• Determine & Validate Value Stream Map Boundaries

• What Are The Sources Of Information That Support The Value Object As It Moves Through

The Stream?

• Collect Relevant Information

The Transactional Value Stream Defined

Definition:

A Graphical Picture Of All Of The Actions (Both Value Added And Non-

value Added) Required To Bring A Product / Service (Product / Service

Family) From Inception To The Customer

Looks At The Product / Service Flow And Information Flow

Cross Function And Organization Boundaries

Current State And Future States Are Developed

Used To Identify Key Areas For Kaizen Opportunities

Identifying The VALUE Product Or Service Family Within The Value Stream

The VALUE OBJECT Is:

A Single Physical, Service Or Informational Object That Follows All Of The Process Steps Within The Value Stream From Inception To Receipt By Customer

Used To Follow The Value Stream As It Is Mapped And To Calculate The Inventory Levels At Each Process

Used To Demonstrate How Value Is Added As It Moves Through Its Processes To The Customer

PRODUCT or

SERVICE

TYPICAL VALUE

OBJECT

Consumer Credit Credit Card Application

Proposal Request for Proposal

(RFP) Quote Document

Engineering

Change

Engineering Change

Request (ECR)

Engineering Change Order

(ECO)

The VALUE Product Or Service Family Analysis

Information To Record:

Process Name & Description

Number Of Steps Within Activity

Demand For Each Activity - Quantity & Frequency

Identify “Who is the Customer”

When Mapping Transactional Processes There Are Many Times That The End Customer Is Not The Actual “Purchaser” Of The Final Product Or Service

The Customer Would Be Defined In This Case As The Individual, Function, Team, Or Organization “Receiving Or Getting The Benefit From” The Output Of The Process To Be Mapped

It Is Important To Know Who Our Customer Is So That We Can Identify What They Consider To Be Value-added Activity In This Process

Completing Customer Analysis

Customer/

Stakeholder

Reason They Are A

Customer /

Stakeholder

What They Value

From The Process

Primary

Customer

“X”

Complete Customer / Stakeholder Analysis

Completed listing.

30 minutes As A Team, Use The Chart On The Previous Slide To

Make A List Of :

1. The Customers And Stakeholders Of This Process

2. Why They Are A Customer Or Stakeholder

3. What Is The Value They Are Looking For

4. Determine Who Is The Primary Customer

5. Put Answers On A Flip Chart

Complete Customer / Stakeholder Analysis Of The Process To Be Mapped.

Instructions Time To Complete

Deliverable

Day Key Actions Daily Deliverables

Day 1 Introductions

Review Pre-Work

Current State Mapping

Conduct Data Gathering For

Current State Map For Business

Current State Process Walk

Labeling of Process Boxes on Current

State Map

Current State Map with Complete Data

Current State Report-Out to Management

Day 2 Identify Potential Current State

Improvements

Future State Mapping

Completing the Value Stream Plan

Completed Marked-Up Current State Map

With Kaizen Bursts

Completed Future State Map

Complete Value Stream Plan

Day 3 Continue if needed

Value Stream Mapping Session Agenda

Create Current State Map

Team Walk #1:

Process Identification

Team Walk #2:

Data Gathering

Map Creation

Key Characteristics

Process To Create The Current State Map

Everyone Initially Should Create Their OWN Map

Walk The Entire Process First To Record Process Flow

Begin At End Point And Proceed In Reverse Flow

Draw Map Of Process Using Pencil And Paper

Decide What Data Will Be Collected For Each Process

Walk Reverse Flow Again And Collect Data And Information

Flow

Use Actual, Observed Data Wherever Possible

Use Smallest Time Units Whenever Possible – Be Consistent

Consolidate Individual Maps Into A Single Map By Consensus

Of The Team

Use Post-it Notes To Facilitate Any Necessary Changes

Review Map As A Team To Ensure Accuracy And Validate

Flow

23

Current State Map - Illustration

Customer

Process Box

Process Box Process Box

Process Box

Process Box

Process Box

I I I I I I I I I I I I I I I

Process Metrics

Process Metrics

Process Metrics Process Metrics Process Metrics Process Metrics

I I I

. . . Lead

Time

Proc.

Time

=

=

Information Flow

Information Flow

Supplier

TAKT Time Time Available

Demand = =

Items Found On A VSM COMPONENTS

• Customer Data

• Customer Requirements

• Demand / Takt Time

• Company Data

• Company Work Time

• Process Data

• Process Steps

• Data Box For Each Step

• Observed Inventory Levels Between Steps

• Information Flow

• Lead Times And Processing Times

Data Box

• Quality Metric

• Process Time

Definitions • Takt Time - How often should one product be

produced, based on the rate of sales

to meet customer requirements.

• Processing Time - The time it takes for a single

product or service to go completely through a

process

• First Pass Yield - The percentage of time that the

process can be successfully completed on the first

attempt using the standard process, tools,

personnel, and information all at the right time and

in the right place

Calculating Lead Time For Each Process Divide The Amount Of Inventory By

The Daily Demand To Derive Lead Time For That Process

45 seconds 420 seconds 720 seconds 780 seconds 15 seconds

Receipt: 75/125 = .6 days

Data Entry: 200/125 = 1.6 days

Underwrite: 500/125 = 4 days

Generate Package: 0/125 = 0 days

Mail Package: 75/125 = .6 days 27,000 Seconds

125 Applications

Takt Time

= 216 seconds

Daily Demand = 125 applications

.6 days 1.6 days 4 days 0 days .6 days

In Box

Zip Code

75

Packages

Mailbag

FIFO

75

Envelopes

In Box

FIFO

200

Applications

Outlook

FIFO

0 Files

In Box

$ Value

500

Files

= 1

Generate

Package

= 2

Receipt

= 2

Underwrite

= 5

Data Entry

Quality = 100%

Processing Time = 15”

DOI = 8”

Quality = 97%


DOI = 420"

Quality = 35%

Processing Time = 720"

DOI = 385”

Quality = 98%


DOI = 184"

Mail

Package

= 1

Quality = 100%


DOI = 45"

IN IN IN IN IN

Add Processing Times And Lead Times For Each Process To Derive The Totals For The Value Stream

P.T = 1,980 sec

L.T. = 6.8 days

Loan Applicant

Example

• Demand = 2,500

Accounts/month

• 8 Hours/Day

USPS

Daily

27,000 Seconds

125 Applications

Takt Time

= 216 seconds

USPS

Daily



P.T = 1,980 sec

L.T. = 6.8 days

Central Data

Base

Credit Check

Current State Example

In Box

Zip Code

75 Packages

Mailbag

FIFO

75 Envelopes

In Box

FIFO

200 Applications

Outlook

FIFO

0 Files

In Box

$ Value

500 Files

= 1

Generate

Package

= 2

Receipt

= 2

Underwrite

= 5

Data Entry

Quality = 100%

Processing Time = 15” DOI = 8”

Quality = 97%


DOI = 420"

Quality = 35%


DOI = 385””

Quality = 98%


DOI = 184"

Mail

Package

= 1

Quality = 100%


DOI = 45"

IN IN IN IN IN

Supplies For The Current State Process Walk

All Team Members Will Require:

Personal Protective Equipment (PPE) Required By Facility

Ie: Safety Glasses, Earplugs, Steel-toed Shoes, Etc.

11x17” Paper

Clipboard

Icon Sheet

Completed Current State Map Example Drawn In Class

Pencil

Two Stopwatches Needed Per Team

Current State Map: Team Walk #1- Process Identification

Everyone Initially Should Create Their OWN Map

Walk The Entire Process First To Record Process Flow

Begin At End Point And Proceed In Reverse Flow

Draw Map Of Process Using Pencil And Paper

Current State Map: Team Walk #2 – Data Gathering

Decide What Data Will Be Collected For Each Process

Walk Reverse Flow Again And Collect Data And Information Flow

Use Actual, Observed Data Wherever Possible

Use Smallest Time Units Whenever Possible – Be Consistent

Roles / Assignments

1. Process Walk Guide - Leads The Team Through The Correct Sequence Of Processes

2. Interviewer - Leads The Interview With The Operators/Process Participants

3. Timer - Records All Actual Operator Cycle Times, Machine Cycle Times, And Drop Off Intervals

4. Inventory Counter - Counts Number Of Pieces Queued At Each Process

Key Interviewer Guideline Questions

Introduce The Team And Remind The Operator About The Exercise We Are Performing

Determine Which Scripted Questions Are Appropriate For Process Observed

Determine If There Are Any Other Relevant Questions That Need To Be Asked

Thank The Operator For His / Her Time

First Try To Observe The Process Firsthand In The

Workplace

When That Is Not Possible, Continue To Follow This

Sequence In Order To Obtain Necessary Data

Always Want To Start With Data First

Be Cautious When Using The Interview Method As It

Tends To Yield Highly Inaccurate Data

1. Go To Gemba (The Actual

Workplace)

2. System Generated Report

Or Work Flow Documents

3. Historical Performance

Reports

4. Staff Interviews

Important Points On Gathering Data

Data Gathering Hierarchy

5. Management Interviews

Current State Map: Map Creation

Consolidate Individual Maps Into A Single Map By Consensus

Of The Team

Use Post-it Notes To Facilitate Any Necessary Changes

Review Map As A Team To Ensure Accuracy And Validate Flow

Report-out To Management

Identify Improvements To The Current State

Identify Potential Current State Improvements

• Is The Current Process Producing To Takt Time?

• Which Processes Can Be Coupled Using Continuous Flow?

• Where Can Visually Managed Queues Couple Processes?

• Where Are Manpower Improvement Opportunities?

• Which Processes Need Quality Improvements?

• What Other Information Flow Improvements Are Required?

• What Other Process Improvements Are Required?

• Look For Overproduction And “Push” Processes, Impediments To Flow

• Where Is Inventory Accumulating?

• Is The Poor Quality In Certain Areas Due To Lack Of Standard Work?

Some Potential Questions To Ask

• 8 Wastes

• Value Stream Concepts

Identify Potential Current State Improvements

Guidelines For Marking Up Current State Map

Based On Lean Principles, Mark-up The Current State Map

Discuss Each Improvement Opportunity As A Team

Entire Team Should Be Engaged

“Validate” Assumptions And Gather Any Additional Data – Review With Stakeholders

VSM Is The “Big Picture” – Enough But Not Too Much Detail

Be Thorough - The Marked-up Map Will Be The Basis For Creating The Future State Map

Now You Are Ready To Create The Future State

Create The Future State Map

38

It Forms The Basis Of An Implementation Plan Towards A Lean Production

System

It Forms A Stream Of Value-adding Flow Linked To The Customer By Pull

Or Continuous Flow

It Allows For The Team’s Full Participation And Commitment In

Implementing The Future Vision Of The Business. The Framework Of The

Future Vision Addresses:

What Kind Of Facility Do We Want It To Be?

What Will Ensure Customer Satisfaction?

What Do We Want Our Customers To Say About Us?

Does Our Vision Align To The Company Business Goals?

Purpose Of A Future State Map

What Is The Takt Time?

Where Do You Use Continuous Flow?

Where Do You Need Pull Systems?

At Which Single Point (Pacemaker) Will You Schedule Production?

– How Will You Level The Production Mix?

– What Increment Of Work Will Be Released & Withdrawn At Pacemaker?

What Process Improvements Are Required As Future State Dictates?

What Constraints (I.E. Equipment/Financial/Time) Do You Need To

Consider?

In The Future State, Work To Fix The Root Causes Of Waste, Not Just The

Symptoms.

Future State Key Questions

Start With The Marked Up Current State Map

Draw The Pieces Of The Map That Are The Same

Combine Processes That Flow

Implement Visually Managed Queues Between Areas Of Flow

Calculate Lead Time And Processing Time

Identify Loops On The Map

Steps For Creating The Future State

Begin With The Marked Up Current State Map

Quality = 35%


DOI = 385””

Loan Applicant

Northern Home Credit (NHC)

• Demand = 2,500

Accounts/month

• 8 Hours/Day

USPS

Daily

27,000 Seconds

125 Applications

Takt Time

= 216 seconds USPS

Daily



P.T = 1,980 sec

L.T. = 6.8 days

Central Data

Base

Credit Check

In Box

Zip Code

75 Packages

Mailbag

FIFO

75 Envelopes

In Box

FIFO

200 Applications

Outlook

FIFO

0 Files

In Box

$ Value

500 Files

= 1

Generate

Package

= 2

Receipt

= 2

Underwrite

= 5

Data Entry

Quality = 100%


DOI = 8”

Quality = 97%


DOI = 420"

Quality = 98%


DOI = 184"

Mail Package

= 1

Quality = 100%


DOI = 45"

IN IN IN IN IN

VMQ VMQ VMQ VMQ

Flow Cell

Standard Work Standard Work Standard Work

Implement Poke Yoke


Central Data

Base

Loan Applicant

USPS

Daily

• Demand = 2,500

Accounts/month

• 8 Hours/Day

27,000 Seconds

125 Applications

Takt Time

= 216 seconds

USPS

Daily 24 packages/day

Draw The Pieces Of The Map That Are The Same

Mail Package

= 1

Quality = 100%


DOI = 45"


Central Data

Base

Loan Applicant

USPS

Daily

• Demand = 2,500

Accounts/month

• 8 Hours/Day

27,000 Seconds

125 Applications

Takt Time

= 216 seconds

USPS

Daily

= 7

Data Entry & Underwrite

Quality = 98%

Processing Time = 1,500”

DOI = 230"

Combine Processes That Flow

• Combine Process Boxes

• Total The Number Of Operators

• Total The Process Times

• Record Expected Drop Off Rate

• When Combining Two Processes Multiply The Quality Yields If No

Improvement Activity Is Needed

Mail Package

= 1

Quality = 100%


DOI = 45"

24 packages/day

Implement Visually Managed Queues


Central Data

Base

Loan Applicant

USPS

Daily

• Demand = 2,500

Accounts/month

• 8 Hours/Day

27,000 Seconds

125 Applications

Takt Time

= 216 seconds

USPS

Daily

= 7


Quality = 98%


DOI = 230"

1,500 sec

= 1

Receipt

Quality = 100%


DOI = 15”

15 sec 45 sec

Mail Package

= 1

Quality = 100%


DOI = 45"

= 1

Generate

Package

Quality = 97%


DOI = 420"

420 sec

In Box

Zip Code

32 Packages

Mail Bag

FIFO

32 Envelopes

In Box

FIFO

0 Applications

.25 days 0 day .25 days

• Establish Upper Size Limits For

Visually Managed Queues

• Note: Batch Timing, Resources,

Capacity, And Flow Will Drive

Queue Sizes

• Calculate Lead Times Based On

Upper Size Limit Of Queue (Based

On Buffer Theory The Queue Will

Average 1/2 Full ~ 32 Envelopes)

• Use The Queue Size And Status To

Manage Staffing For Mail Reception

Target Lead

Time

Established

by Policy at ½

day.

Target Lead Time

Established by Policy at 1

day.

Target Lead Time

Established by

Policy at ½ day.

24 packages/day

In Box

FIFO

63 Applications

.5 day

Calculate Lead Time And Processing Time


Central Data

Base

Loan Applicant

USPS

Daily

• Demand = 2,500

Accounts/month

• 8 Hours/Day

27,000 Seconds

125 Applications

Takt Time

= 216 seconds

USPS

Daily

L.T. = 1 day

P.T = 1,980 seconds

= 7


Quality = 98%


DOI = 230"

= 1

Receipt

Quality = 100%


DOI = 15”

Mail Package

= 1

Quality = 100%


DOI = 45"

= 1

Generate

Package

Quality = 97%


DOI = 420"

In Box

Zip Code

32 Packages

Mail Bag

FIFO

32 Envelopes

In Box

FIFO

63 Applications

24 packages/day

In Box

FIFO

0 Applications

1,500 sec 15 sec 45 sec 420 sec

.25 days 0 day .25 days .5 day

Identifying “Loops”

A “Loop” Is A Logical Grouping Of Improvements To Be Made To The Current State In Order To Achieve The Future State

Loops Are Used To Link Focus Improvement Activities In The Value Stream Plan In A Manner Around A Particular New Capability In The Future State

Loops Are Used To Logically Sequence Improvement Activities In The Value Stream Plan So That The Future State Is Achieved Through Incremental Phased Implementation Vs. “Big Bang” (Everything At Once)

Identifying “Loops”


Central Data

Base

Loan Applicant

USPS

Daily

• Demand = 2,500

Accounts/month

• 8 Hours/Day

27,000 Seconds

125 Applications

Takt Time

= 216 seconds

USPS

Daily

Application

Loop

Decision Loop

Communication Loop

= 7


Quality = 98%


DOI = 230"

= 1

Receipt

Quality = 100%


DOI = 15”

Mail Package

= 1

Quality = 100%


DOI = 45"

= 1

Generate

Package

Quality = 97%


DOI = 420"

In Box

Zip Code

32 Packages

Mail Bag

FIFO

32 Envelopes

In Box

FIFO

63 Applications

24 packages/day

In Box

FIFO

0 Applications

L.T. = 1 day

P.T = 1,980 seconds

1,500 sec 15 sec 45 sec 420 sec

.25 days 0 day .25 days .5 day

Develop Transformation Plan

• Establishes Priority

• Clearly Identifies Actions

• Details Rigorous Timeline

• Clearly Identifies Ownership

• CREATES A PLAN TO ACHIEVE FUTURE STATE

Purpose Of The Transformation Plan

Completed Value Stream Plan

The Value Stream Plan

Follow-up & Monitoring Is Crucial To Success

What Does Not Get Followed Up On – Does Not Get Done

Conduct Regular Progress / Status Reviews With Value

Stream Manager, Owner, & Upper Management

Transformation Action Plan Follow Up And Monitoring

Roles In VSM

Leadership

Define And Communicate The Long-term “Vision”

Identify & Prioritize Key Value Streams To Be Addressed By The Business

Provide Sponsorship And Support For VSM Events And Implementation

Value Stream Manager - Business Process “Owner”

“Owns” The Value Stream Plan

Responsible For Overseeing Transformation Plan

Provides Leadership In Resolving Issues And Removing Obstacles

“Owns” The Operational Aspects Of The End-to-end Process, Even If It Crosses Organizational Boundaries

Continues The VSM Process Through The Second And Subsequent Cycles

Maintains The Linkage Between VSM And Strategic Vision Of The Business

When The Future State Becomes A Reality, It Becomes Our

Current State

We Are Only At The Beginning Of Our Continuous Improvement

Journey

Strive For Perfection!

Are We Done?

Appendix - Icons

VSM Icons VSM Icon Represents Notes

Manufacturing Process One Process Box Equals An Area Of Flow.

All Processes Should Be Labeled. Also

Used Departments, Such As Production

Control.

Supermarket A Controlled Inventory Of Parts That Is

Used To Schedule Production At An

Upstream Process

Withdrawal Pull Of Materials, Usually From A

Supermarket

Transfer Of Controlled

Quantities Of Material

Between Processes In

A “First-in-first-out”

Sequence.

Indicates A Device To Limit Quantity And

Ensure FIFO Flow Of Material Between

Processes. Maximum Quantity Should Be

Noted

ASSEMBLY

FIFO

Max frequency / quantity

VSM Icons

VSM Icon Represents Notes

Water Spider

Represents A Person Who Replenishes

Point Of Use Materials

Air Shipment Note Frequency Of Shipments

Transport Kanban Card Or Device That Instructs The Material

Handler To Get And Transfer Parts

Signal Kanban The “One-per-batch” Kanban. Signal When

A Reorder Point Is Reached And Another

Batch Needs To Be Produced

VSM Icons


Pull-ball (Now)

Gives Instruction To Immediately Produce A

Predetermined Type And Quantity

Sequenced Pull (In

Advance)

Gives Instruction To Begin To Produce, At A

Certain Time In Advance, A Predetermined

Type And Quantity

Kanban Post

Place Where Kanban Are Collected And

Held For Conveyance

Information

Describes An Information Flow

Weekly

Schedule

VSM Icons


Production Kanban

(Dotted Line Indicates

Kanban Path)

The “One-per-container” Kanban. Card Or

Device That Tells A Process How Many Of

What Can Be Produced And Gives

Permission To Do So

Kanban Arriving In

Batches

When Kanban Arrive In Batches To Allow

Supplier Process To Combine To Optimize

Set-ups.

Load Leveling Tool To Intercept Batches Of Kanban And

Level The Volume And Mix Of Them Over A

Period Of Time

“Go See” Production

Scheduling

Adjusting Schedules Based On Checking

Inventory Levels

20

0X0X


Process

One Process Box Equals An Area Of Flow

All Processes Should Be Labeled

Also Used For Departments Such As

Production Control

Outside Sources

Used To Show Customers, Suppliers And

Outside Manufacturing Processes

For Project-based Maps, Could Depict The

Start And End Of The Process

Data Box Used To Record Information Concerning A

Process, Department, Customer, Etc.

Inventory Count And Time Should Be Noted

VSM Icons

Receipt

Quality = 100%


DOI = 8”

IN


Movement of output to

the Customer

Usually Connects The Last Process On

The Map To The Customer

Usually Connects “Inception Point” To The

First Process On The Map

Movement of VALUE

OBJECT by push

VALUE OBJECT Is Produces And Pushed

Forward Before The Next Process Step

Needs It – Usually Based On A Schedule

Queue Visual

Management

A Visual Management System In Place To

Control Processing Of VALUE OBJECTS

In Transactional Processes

Physical Shipment or

Mailing

Note Frequency Of Shipments

FIFO – First In First Out

Sequence


Ensure FIFO Flow Of VALUE OBJECT

Between Processes. Maximum Number

Should Be Noted

VSM Icons

FIFO

Max frequency/quantity

USPS Daily


Manual Information

Flow

Pull Of Materials – Usually From A

Supermarket

Electronic Information

Flow


Ensure FIFO Flow Of VALUE OBJECT

Between Processes. Maximum Number

Should Be Noted

Kaizen Lightning

Burst

Highlights Improvement Needs At

Specific Processes That Are Critical To

Achieving The Value Stream Vision

Operator/ Associate Represents A Person Viewed From

Above

VSM Icons

= 2

Appendix – 8 Wastes

Inventory Motion Quality Defects

Waiting

zzz zz

Over- Processing

Sign-offs

Transportation

12 1 10

9 8

6 4

13

2

3 11 5 7 Over-

Production Unused Creativity

No way!

The Eight Wastes

Value Adding Process:

A Process Step That Transforms Or

Shapes A Product Or Service

Towards That Which Is Sold To A

Customer.

?%

Non - Value Adding Process:

Those Process Steps That Take

Time, Resources, Or Space, But Do

Not Add Value To The Product Or

Service Itself.

?%

Value Add vs Non-Value-Add

“Find 100 Wastes In Gemba” Exercise

• As A Leader Of Driving Lean Conversion, You Must Be Masterful At The Never-ending Identification And Elimination Of Waste.

• Daily Management (Use Of Visuals And Daily Walk-around Process) Will Help With Identification Of Less-than-plan KPIs At The Cell Level. You Must Also Be Masterful At Identifying Waste In The Cell By “Just Looking.”

• To Test You And Your Team’s Skill, You Will Be Given One Hour To Identify Wastes In The Cells You Have Been Working In And Driving Change This Week.

Waste Recording Checklist

Z Z Z Z Z Z Z

Waiting

1,2, 3,4, 5,

6 Overproduction

1 st Unused

Creativity

x

Quality

Defects Transportation

Motion Inventory

De-Burring

Process

Cell:

Waste Watcher:

Waste observed: Place an x in the appropriate column that best describes the waste category for each waste observed

Appendix – Value Stream Concepts

Lean Value Stream Concepts

1. Restructure The Organization Around The Value Stream.

2. Produce To Takt Time.

3. Develop One-piece Flow Wherever Possible.

4. Reduce Changeover Time And Run Smaller Batches.

5. Use Supermarket Pull Systems To Control Production Where One-piece Flow Cannot Exist.

6. Send Production Schedules To Only One Process In The Value Stream.

7. Level Production Volume At The Pacemaker.

8. Level Product Mix At The Pacemaker.

9. Key Performance Indicators (KPI’s).

10. Continuous Improvement Leadership.

Restructure The Organization Around The Value Stream.

Customer

Process 1 Process 2 Process 3

KAIZEN KAIZEN

Provides Focused Leadership

Creates Common Goals For The Organization

Product Family (Start-to-finish) Scope

Reduces Potential For Sub-optimization

Assigns Appropriate Resources

Produce To Takt Time.

Targets Customer Demand

Reduces Chance For Over-production

Encourages Playbook Development

Staff And Produce To V.O.C.

TAKT

Time

Standard

WIP Work

Sequence

R

F 4 5

2 3

6

1 2 1 4 3

7 8 5 6

2

3 4

1

Elements of Standard Work

Production Should Be Pulled Along At Takt Time.

Don’t Produce 7 Units Once Per Week When The Customer Wants 1 Per Day.

1

Day

1

Day

Takt Time = 1 Day

Do Not Allow Room Or Capability For Batching.

Add Value to the Product Continuously Through the Process

$

$

$ $

$

$

$

$

$

$

Raw

Material

Finished

Goods

Copyright C Shingijutsu Co., Ltd.

Develop one Piece Flow

Less Waste Than Batch Processing

Quicker Visibility Of Quality Problems

Operators Take Broader Product Ownership

Shorter Lead-time

Reduce Changeover Time And Run Smaller Batches.

Easier To Match Customer Demand Mix

Reduces Over-production

Shorter Lead-time

Lowers Inventory Pieces And Space

Control Production Where One-piece Flow Cannot Exist.

Replaces Push With Pull System


Shorter Lead-time And Less Inventory

Which Runs Smoother?

Pushing Pulling

Use Supermarket Pull Systems

Send Production Schedules To Only One Process In The Value Stream.

Reduces Scheduling Complexity

More Predictable And Often Reduced Lead-time

Reduces Scheduling Variability Upstream

Level Production Volume At The Pacemaker.

Allows For Paced Withdrawal To Takt Time

Reduces Volume Fluctuations Upstream

Supports Managing With Playbooks

Operator Loading

Chart

TT

Time Observations Process Capacity

Standard Work

Combination Sheet

T T abddjdj vnvm abddjdj vnvm

abddjdj vnvm

abddjdj vnvm abddjdj vnvm abddjdj vnvm

Standard Work Sheet

FG RM

Standard Work Playbook

Level Product Mix At The Pacemaker

Flexibility To Match Customer Demand


Shorter Lead-time

Lowers Inventory Pieces And Space

A B A C A B A C A B A C …..

Key Performance Indicators (KPI’s)

“At a Glance” view of

Performance

“Everyday Kaizen”

Countermeasures taken

at Cell Level

Legend &

Historical Trend

(include JOP)

Continuous Improvement Leadership

Driven By Company’s Strategy

Organize By Value Stream

Pro

ble

ms

Pro

ble

ms

Pro

ble

ms

Pro

ble

ms

Kaizen!

Action Resp When Benefit

KPI Board

Safety Quality Delivery Cost

Prioritize using PACE

Appendix – Error Proofing

Error-proofing Is A Technique For Eliminating Errors,

Making It Impossible To Make Mistakes.

In Japan: Poka-yoke.

Poka = Inadvertent Mistake

Yoke = To Prevent

Error-proofing advantages

Reduces training requirements

Eliminates many inspection operations

Relieves operators from repetitive tasks

Promotes creativity and value added activities

Results in defect-free work

Provides immediate action when problems arise

Error Proofing

Error-Proofing Techniques

Errors May Either Be Prevented Or Detected

Technique Prevention Detection

Control

(Shut down)

An error is impossible Defective item can’t move on to the next step

Warning An error is about to be made An error has been made

Prevention

Warning Systems In Automobiles To

Alert The Driver That Not All Seat Belts

Have Been Fastened.

Detection

Smoke Detectors

Control (Shutdown)

Prevention & Detection Examples

Prevention

• Cameras That Don’t Function When

There Isn’t Enough Light.

• When Gas Stations Offered Leaded

And Unleaded Gasoline, The Nozzle

On The Unleaded Pump And Gas Tank

Hole Were Smaller Than The Ones For

Leaded Gasoline.

Detection

• Laundry Dryers That Have A

Device That Shuts Them Down

When Overheating Is Detected.

• A Computer Spell Checker.


Contact Methods

Electrical Outlets Have Been Error-proofed To Assure Proper Polarity. It Is

Impossible To Put A Plug In The Outlet Incorrectly.

Guides Or Guide Pins That Assure Proper Insertion.

Magnetic Contacts That Assure Proper Positioning.

Two Handed Start Buttons To Avoid Hand Accidents.

Pressure Sensitive Mats That Stops Dangerous Pinching Machinery When

Someone Steps Onto Mat.

Limit Switches On Fork Trucks That Prevents The Truck From Moving While

The Driver’s Seat Is Unoccupied.


Fixed-Value Methods

If Four Labels From Different Rolls Are Needed On Each Shipping Box,

Put All The Labels On One Roll To Make It Easy To Spot Missed Labels.

Kitted Components. Kitting Is Having The Exact Amount Of Needed

Material For One Unit In One Box. It Makes It Easy To Catch Missing

Components.

Sensors That Count Parts As They Are Placed In A Box.

Scales To Weigh Packaging Documentation And Alert An Operator To A

Missed Document.


Motion-Step Methods

Place Photo-electric Switches Into Each Component Bin.

Beam Must Be Broken On Each Bin Before Conveyor Will Move.

Motion Sensors To Stop A Machine To Prevent Safety Errors.


Error-proofing Devices Can:

Prevent Errors From Occurring

Detect The Error After It Occurred

Detect The Defect After It Has Been Made

The Best Error-proofing Devices Are:

Simple And Cheap

Part Of The Regular Process

Close To Where The Error Is Made


7 Steps to Error-Proofing

1. Create A Process Map And Identify The Locations At Which The

Defects Are Found And Made.

2. Evaluate Current Procedures For Adequacy And Determine If They Are

Being Followed.

3. Identify Defect Provoking Conditions At Each Process Step.

4. Identify The Root Cause(s) (Error) Of Each Type Of Defect And In

Which Process Step It Occurs.

5. Identify The Type Of Error-proofing Device Required.

6. Create The Device And Try It.

7. Measure For Effectiveness.

When You Can’t Error-Proof

Use Colors And Color-coding

Credit Card Receipts: Customer Gets Yellow Copy,

Merchant Gets White Copy.

Use Shapes

Notch A Stack Of Forms So It’s Easy To Tell If The

Forms Are Out Of Order

Make It Easy To Do It Right

Checklists

Effective Data Collection Formats

Workflow With Fewer Hand-offs

Symbols

Get Help on Your Continuous Improvement Journey

One of the things you will find as you move along your Lean journey is that

going it alone is much harder than if you had a coach. A good coach will push

you to greater and greater levels of self-sufficiency. Regardless of where you

are on your journey, we can help.

If you are just beginning your concerted continuous improvement efforts, we can

help you chart your course and teach you what you need to know to start

leading change on your own. For those who are further along your journey, we

can help by teaching you more advanced topics, reviewing what you are already

doing, and helping you improve your improvement processes.

© Gregory Cochran & Associates, LLC. All Rights Reserved. For the exclusive use of Gregory Cochran & Associates ,

LLC with no reproduction or distribution permitted without the permission of Gregory Cochran & Associates , LLC

Ways We Support Our Clients

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you and work hand-in-hand with you to bring about change in your organization.

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Ways We Support Our Clients Continued

Lean Help in the NE Ohio Area: There are a lot of factors that go into choosing a

coach. Getting a good fit is the most important. But there are some special

benefits to having a continuous improvement expert right in your own back yard.

Just in Time training. Want to do a large scale kaizen? No problem! But, having a local Lean coach

also allows you to do smaller, Just in Time projects as well. These mini improvement events can

yield big gains, but more importantly they require less planning time on your part and have less

impact on your team’s production than a traditional kaizen.

You save on travel expenses. No airfare. No lodging. Using a local coach saves you money.

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